21.09.202603:40:11UTC+00Rupiah Holds Near IDR 17,810 as BI Meeting Looms

The Indonesian rupiah was little changed on Monday, trading around IDR 17,810 per U.S. dollar after a seven-session losing streak, as markets positioned ahead of Bank Indonesia’s policy decision this week. The central bank will begin its two-day meeting on Tuesday, having kept its benchmark rate at 5.75% for a second consecutive month in August, following a total of 100 basis points of hikes since May.

Governor Destry Damayanti recently emphasized that safeguarding currency stability remains her primary focus, supported by coordinated monetary, macroprudential, and payment-system measures. Externally, softer oil prices—helped by ongoing diplomatic efforts in the Middle East—have eased concerns over imported inflation. However, domestic price pressures remain, with annual inflation accelerating to 3.19% in August.

Fiscal risks also linger, as lawmakers reportedly consider revising the 3% budget-deficit cap to create space for increased welfare and development spending. On the global front, the U.S. dollar index hovered near 100.2, with investors awaiting comments from Federal Reserve officials this week for further clues on the policy outlook.